670% in 2 years! This old part of Penny is shooting in Spacex contracts

Today (February 10) was another great day for shareholders in Filecro (LSE: FTC), since Ex-Penny participation increased by 12% to a maximum of 16 years of 104p. This means that it has won almost 700% in two years!

For those strangers, AIM-The filtronic list designs and manufactures products for aerospace, defense, space and telecommunications infrastructure markets.

The reason for this meteoric increase is to its association that changes the game with Spacex by Elon Musk. This focuses on the supply of radiofrequency components (RF) to admit the Spacex Starlink satellite constellation, which provides high -speed Internet worldwide.

What happened

The action was great today after pushing a new contract with Spacex.

The CEO Nat edington announced: “We are delighted to have assured this substantial order, which underlines Filtronic's reputation for offering high -performance RF solutions to our leading market client. This contract, together with our growing momentum in strategic markets, provides us with greater confidence in our ability to overcome our growth objectives for fiscal year2025 and fiscal year 2016.. “

The agreement is valued at almost 17 million, and is the fourth victory for the contract with Spacex since April 2024. Clearly, this association with the most valuable private company in the world is deepening, which is excellent news for filtronics shareholders .

Valuation

In light of this news, analysts have been fighting to update their projections. For the current year (FY25 that runs until the end of May), Broker Cavendis Now it sees income reaching £ 50.4 million and earnings per action (EPS) of 5p. That would represent an year -on -year growth of 98% and 255%, respectively.

However, for fiscal year 26, the updated forecast is an income of £ 43 million and EPS of 3.2p. According to this, the action is quoted in a multiple of price to term gains (p/e) of 32.5.

While that seems quite high, it obviously does not take into account the probability of gaining more contracts. It would not be ruled out given the commercial impulse and the large size of the growing world markets of defense and space.

What could go wrong?

On the other hand, as Spacex's income becomes a most cake, the risk of customer concentration increases.

If there were potential products of products, or if Spacex decided to manufacture its own products internally, then that could be disastrous for the price of filtronic actions.

Mega-constellation

As soon as a week passes without Spacex adding some more satellites from the Internet to its mega-constellation megalink. On February 8, he sent another lot from 21 to a low orbit, including 13 with direct cell capacity.

In other words, they can connect to smartphones. T-Mobile Starlink, for example, now automatically connects to the US areas where the cellular network is not enough.

Spacex finally aims to have up to 42,000 satellites, compared to around 7,000 today. This will take several more years to build.

Indirect spacex game

I wanted to invest in Spacex for years (since I read The space barons: Elon Musk, Jeff Bezos and the search to colonize the cosmosa 2018 book by Christian Davenport). Unfortunately, it is still a private company, despite being valued at $ 350 billion.

However, filtronic possibly offers an indirect way to take a walk. He says it is “Avant -garde technology … Play a crucial role in the deployment of Spacex's Starlink constellation“

That is the case, the sales of the company seem to be established in the highest engine in the coming years, assuming not losing the contract. I am tempted to start a position at the end of this month.